The Crown Resorts Ltd (ASX: CWN) share price is dropping lower on Friday. At the time of writing, shares in the casino operator are trading at $12.31 each – down 0.73%. For context, the S&P/ASX 200 Index (ASX: XJO) is currently sitting 0.24% higher.

The casino operator’s price fall comes as the funding, time, and scope of the Victorian royal commission into Crown Melbourne is extended.

Let’s take a closer look at the latest developments.

What’s happening with the royal commission?

Victorian Acting Premier James Merlino confirmed the royal commission into the granting of the Crown Melbourne licence would be extended by 10 weeks, with its funding boosted by $9.75 million. This was at the request of the commissioner, Raymond Finkelstein.

“We established this royal commission to get the answers we need about Crown – and this extension will ensure the scope of evidence provided so far is able to be thoroughly considered,” Merlino said.

In its statement to the ASX, Crown said it would continue to “fully co-operate” with the royal commission.

Helen Coonan, former senator and current Crown chair, said:

As executive chairman, I have made clear that any shortcomings identified by the royal commissions will be addressed. The board and I are committed to making Crown a stronger, more transparent and respected company.

We have initiated a sweeping program of significant reforms, enhancements and personnel changes. We cannot change the past, but we can be absolutely steadfast in the approach we take to driving the culture and transparency of the company into the future.

The Victorian Government says the extension will allow commissioner Finkelstein to investigate “a wider range of matters”. The government says this will be necessary due to the “seriousness of evidence produced through hearings and submissions to date”.

Investors may be worried by this news, judging by the drop in the Crown share price today.

The cascade of investigations into Crown’s operations was sparked when the New South Wales Independent Liquor and Gaming Authority found the company “unsuitable” to hold a gaming licence in the state.

Crown share price snapshot

Despite the problems besieging it over the past 12 months, the Crown share price has increased by around 20%. The rise is due to both a rebound from the COVID-19 market crash of March 2020, and takeover approaches by Blackstone Group Inc, Oaktree Capital, and Star Entertainment Group Ltd (ASX: SGR).

Crown Resorts has a market capitalisation of around $8.3 billion.

The post Crown (ASX:CWN) share price slips as royal commission extended appeared first on The Motley Fool Australia.

More reading

• M&A rumour fires up the Iress (ASX:IRE) share price today
• ASX 200 drops, Altium soars, Skycity drops, NAB falls
• Star (ASX:SGR) share price latest to fall on anti-money laundering investigation
• Crown (ASX:CWN) share price under pressure from AUSTRAC enforcement investigation
• ASX 200 down 0.1%: Altium rockets, NAB hit with AUSTRAC investigation

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3xbxy2a

Australia’s top brokers have been busy adjusting their estimates and recommendations once again. This has led to the release of a number of broker notes.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Altium Limited (ASX: ALU)

According to a note out of Credit Suisse, its analysts have retained their outperform rating and lifted their price target on this electronic design software company’s shares to $42.00. This follows news that Altium has rejected a $38.50 takeover approach from Autodesk. The broker believes the offer demonstrates the company’s ability to attract strategic partnerships. It also isn’t ruling out Autodesk coming back with a higher offer in the future to seal a deal. The Altium share price is fetching $35.47 this afternoon.

BHP Group Ltd (ASX: BHP)

A note out of Macquarie reveals that its analysts have retained their outperform rating and increased their price target on this mining giant’s shares to $61.00. According to the note, the broker made the move after increasing its earnings estimates to reflect sky high iron ore prices. Macquarie also notes that BHP stands to benefit from improving metallurgical coal prices. The BHP share price is trading at $48.74 today.

IDP Education Ltd (ASX: IEL)

Analysts at UBS have retained their buy rating but trimmed their price target on this language testing and student placement company’s shares to $28.25. According to the note, the broker is expecting COVID-19 headwinds in the key Indian market to weigh on its short term performance. It estimates that the Indian market accounts for 34% of its revenue. However, UBS anticipates a swift recovery once the crisis passes. Looking further ahead, the broker expects IDP Education to be in a stronger market position post-pandemic. The IDP Education share price is fetching $22.50 today.

The post Brokers name 3 ASX shares to buy now appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Altium, AVITA, & Domino’s shares are pushing higher
• Why has IDP Education (ASX:IEL) share price risen 33% in the last 12 months?
• Top brokers name 3 ASX shares to buy today
• 5 things to watch on the ASX 200 on Thursday
• Why Altium, Appen, National Storage, & Woolworths are tumbling lower

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Altium and Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended Altium. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3iEt93X

The Afterpay Ltd (ASX: APT) share price has tipped higher today, currently up 4.77% to $104.61.

This marks the return to a triple-digit share price for Afterpay after it slipped below the iconic $100 level on 6 May.

June is currently looking like a bumper month for Afterpay shareholders, with the company’s shares up by about 13% for the month so far.

Afterpay share price stages a much needed recovery

Things were looking pretty gloomy for the leading buy now, pay later (BNPL) company when its shares briefly hit an 8-month low of $81.85 on 13 May.

The harsh selling pressure in early May dragged the year-to-date performance of the Afterpay share price to a low of -30% at the time.

But with “sell in May and go away” behind us, Afterpay shares have set out in June on the right foot, making up for lost time.

Despite no price-sensitive announcements since Afterpay’s third-quarter results on 20 April, the broader tech sector has bounced back strongly alongside a fall in benchmark US yields.

Tech shares bounce back

The S&P/ASX 200 Info Tech Index (ASX: XIJ) is up about 7.6% in June, with large-cap players including WiseTech Global Ltd (ASX: WTC), Xero Limited (ASX: XRO) and NextDC Ltd (ASX: NXT) all rising between 3.50% and 10%.

Elsewhere, the BNPL sector is also enjoying some buying support, with the Zip Co Ltd (ASX: Z1P) share price up almost 6% today to $7.28.

US benchmark yields ease

Benchmark US Government bond yields previously surged from lows of 0.50% in late 2020 to as high as 1.7% in April.

The spike in bond yields at the start of the year accelerated the rotation from high-growth technology shares into value sectors expected to benefit from a rebound in economic growth. This drove a number of heavy selling sessions for the tech-heavy Nasdaq across late April and early May.

In the last five trading sessions, US benchmark yields took a 10% fall from about 1.625% to 1.459%.

The post Afterpay (ASX:APT) share price bounces back above $100 appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Altium, AVITA, & Domino’s shares are pushing higher
• ASX 200 up 0.2%: Tech shares rise, Domino’s expands
• What I regret about my Afterpay (ASX:APT) shares: analyst
• ASX 200 drops, Brickworks soars, Woolworths falls
• 3 growing ASX tech shares for growth investors

Motley Fool contributor Kerry Sun owns shares in NextDC. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3pGH1vT

The AML3D Ltd (ASX: AL3) share price is racing higher in mid-morning trade. This comes after the advanced 3D parts manufacturer announced it has been granted a new Australian patent.

At the time of writing, AML3D shares are swapping hands for 22.5 cents, up 7.14%.

AML3D strengthens market leading WAM process

Investors are pushing AML3D shares higher after digesting the company’s positive update.

According to its release, AML3D announced it has been granted a patent to add to its portfolio. Approved by the Australian Patent Office, the latest addition will seek to further protect AML3D’s intellectual property.

The patent discusses the company’s Wire Additive Manufacturing (WAM) process, covering the method and apparatus for manufacturing 3D metal parts.

AML3D’s WAM technology uses 3D metal printers to weld metal wire to create near net shapes. This is considered a more sustainable way of manufacturing as compared to machining from billet, reducing material waste by 80%.

AML3D stated that the WAM technology “significantly reduces the cost of manufacturing, time to build and also allows for clients to customise parts for their specific needs.”

The addressable market for 3D printing is growing at a fast rate. Particularly given COVID-19 disrupted international supply chains, the industry is now seeking to minimise risk by adopting 3D printing technology. This allows companies to manufacture complex 3D metal parts in-house without relying on global logistics.

As such the total addressable market for 3D printing is estimated to be around US$10 billion. In the next 5 years (2026), the 3D printing market is forecasted to increase to US$63 billion.

AML3D managing director, Andrew Sales commented:

This is a significant milestone for our company and our journey. The granting of this patent is further validation of our technology and also secures our position as a provider of a major 3D Printing process.

The market demand for advanced wire feedstock additive manufacturing continues to accelerate driven by the global pandemic. And international patent protection will further strengthen our position in a significant and growing addressable market.

AML3D share price snapshot

Despite today’s strong rise, AML3D shares are down almost 40% for year-to-date performance.

The company’s share price reached an all-time high of 73 cents last September. This came on the back of its contract with Austal Limited (ASX: ASB) to co-develop components for maritime defence applications. However, since then its shares have continued on a downhill trajectory.

The post Why the AML3D (ASX:AL3) share price is soaring 7% today appeared first on The Motley Fool Australia.

More reading

• Afterpay (ASX:APT) share price bounces back above $100
• Good things happen to good companies
• Why Afterpay, Altium, AVITA, & Domino’s shares are pushing higher
• Why the Brickworks (ASX:BKW) share price is up more than 10% this week
• Tesla stock: Headed to $1,000?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Austal Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3zlgdpx

Those who believe in karma would say that good things tend to happen to good people.

I’m not among them.

Don’t get me wrong: I’m an eternal optimist (and my portfolio and our members have benefitted from that approach) — I just don’t believe in karma.

But there is a (non-karmic) analogy in business, though: good things tend to happen to good businesses.

Or, perhaps more accurately, good businesses tend to make good things happen.

The latest example is the relatively unknown and underfollowed retail business, Premier Investments Limited (ASX: PMV).

Never heard of it? You’re not alone.

You’ve probably heard of its retail brands, though.

Think Just Jeans. Smiggle. Peter Alexander, Jay Jays, Portmans and Jacquie E. And others.

It’s been one of the best performing businesses on the ASX over the past decade or so.

Certainly one of its best performing retailers.

And while I’m not one to brag — pride does cometh before a fall, after all — it’s important that I mention we recommended it to members of Motley Fool Share Advisor back in 2013 at $6.60. Including dividends, that recommendation is up 440% since then, compared to the ASX’s 116% gain.

(Why is it important? Because, I hope at least, the track record of a financial advisor should be important to you if you’re listening to them. There are a lot of talking heads who happily tell you what to do and what to think… but have you ever checked to see if their track record makes them worth listening to?)

Anyway, back to Premier.

This morning, it announced that:

– Sales for the first 18 weeks of its second-half are up 70% versus last year.
– They’re also up 16% on the same 18 weeks of the prior year (pre-COVID).

Not only that, but operating profit is expected to be up by more than 80% compared to last year, and more than 100% above the 2019 financial year. (This year did include one extra ‘week’ of sales because of the way retailers count their sales… but that’s less than 2% more time!)

These would be staggering gains for a tech business. 

They are phenomenal for a retailer.

And that takes me back to my opening lines.

I expected Premier to continue to operate successfully and to keep growing. It’s a well-run business with strong momentum and a very good track record.

But even I didn’t expect the numbers to be this good.

I keep my expectations realistic. And am always pleased when they’re surpassed.

It’s why I’m always reluctant to sell quality businesses that are doing well.

Even when they make missteps, they’re worth giving a second (and often a third) chance.

While we owned them, Premier shares:

– Fell by one third between 2016 and mid-2017, before recovering.

– Fell by 25% between the middle of 2018 and early 2019. And went back up.

– Halved in the COVID crash. They’ve almost tripled since.

Those were painful falls.

But we kept the faith.

Our members, who followed our advice, have been well rewarded for their patience.

But no, this isn’t a victory lap.

No-one knows what comes next.

The investing ‘race’ doesn’t have a finish line.

Instead, it’s a Friday morning reminder of a few things:

First, find well-run businesses.

Second, pay decent prices.

Third, wait.

Fourth, fifth and sixth, wait.

Sometimes, your patience won’t repay you. 

Sometimes, a good business goes bad.

Sometimes, a business looks good but was bad all along.

But, sometimes, a good business, though it has its occasional winters, continues to be a good business, and rewards you richly for your patience.

And remember, if you find one business that is up 440%, you can afford to lose 100% of your investment in 4 other businesses and you’ll still have made money!

No, that’s not the aim. 5 winners would be great. But even if we have one Premier, three moderately successful companies and one dog, we’d still be a long way ahead.

It is this potential — what the boffins call ‘asymmetry’, and the rest of us describe as ‘the upside potential can be greater than the downside risk’ — that you should seek out when you invest.

And, when you find a winning company (‘company’… not ‘stock’, or ‘share price’), you should guard it zealously.

Because good businesses tend to make good things happen.

Fool on!

The post Good things happen to good companies appeared first on The Motley Fool Australia.

More reading

• Why the Premier Investments (ASX:PMV) share price just hit a record high
• 2 ASX 200 shares that could be reliable picks for dividends
• Retail sales rose 1.1% in April, but some ASX retail shares are selling off in May
• 2 ASX 200 shares to buy for growth

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3iC2jcu

The S&P/ASX 200 Index (ASX: XJO) is fighting hard to finish the week on a positive note. In afternoon trade, the benchmark index is up 0.2% to 7,315.8 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are pushing higher:

Afterpay Ltd (ASX: APT)

The Afterpay share price is up 4% to $104.09. Investors have been buying Afterpay and other tech shares on Friday following a solid night of trade on the Nasdaq index. The tech-heavy index rose 0.8% during overnight trade. The S&P/ASX All Technology Index (ASX: XTX) is up a sizeable 1.55% so far today.

Altium Limited (ASX: ALU)

The Altium share price has climbed over 2% to $35.48. This gain appears to have been driven by a broker note out of Credit Suisse this morning. According to the note, the broker has retained its outperform rating and lifted its price target to $42.00. It believes the recent takeover offer it received from Autodesk demonstrates its ability to attract strategic partnerships.

AVITA Medical Inc (ASX: AVH)

The AVITA share price has jumped 12% to $5.05. Investors have been buying the regenerative medicine company’s shares after it announced that it has received approval from the US Food and Drug Administration (FDA) to expand the use of its skin-grafting technology. The RECELL System can now be used for children over one month of age. Previously, the system had only be approved for use on adults.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is up 1.5% to $115.60. This morning the pizza chain operator announced its expansion into the Taiwan market via the acquisition of the corporate stores and franchise rights held by Domino’s Taiwan for A$79 million on a cash and debt free basis. Domino’s Taiwan is the second largest pizza chain in the Taiwanese market with a network of 138 franchised stores and 19 corporate stores. Management sees opportunities to grow its network in the country to over 400 stores.

The post Why Afterpay, Altium, AVITA, & Domino’s shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 up 0.2%: Tech shares rise, Domino’s expands
• Why the Avita Medical (ASX:AVH) share price is soaring 14%
• Domino’s (ASX:DMP) share price rises on acquisition news
• What I regret about my Afterpay (ASX:APT) shares: analyst
• Why Zip (ASX:Z1P) and this ASX growth share are highly rated by analysts

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Altium, and Avita Medical Limited. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Altium. The Motley Fool Australia has recommended Avita Medical Limited and Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3wd03fK

The Brickworks Limited (ASX: BKW) share price has gone up more than 10% this week after giving investors an update.

What happened with Brickworks?

Australia’s largest brick manufacturer gave a trading update about its Australia and North America divisions. It’s seeing sales momentum gathering in both locations.

Brickworks’ building products divisions in both Australia and North America are both expected to record higher earnings before interest and tax (EBIT) in FY21 in local currency terms. However, with two more months of trading activity to come, Brickworks said it’s too early to accurately forecast the extent of the EBIT uplift.

However, Brickworks highlighted to investors that the Australian division’s EBIT in the prior year included a significant write-back of costs to take into account the impact of the COVID-19 pandemic. The availability of some materials, such as timber for house trusses, is an issue in some areas, with the resultant delays likely to flatten and extend the duration of the existing pipeline of work.

In the US, operations in North America have been harder hit by the pandemic, particularly in the first half of FY21. However, with the vaccine program in the US well advanced, building activity in the US is now ramping up, according to Brickworks. It has already seen a strong rebound in sales volume to housing customers in May, with this segment currently making up around 60% of total sales.

Property revaluation

It also announced this week a “significant” revaluation profit within its joint venture industrial property trust with Brickworks’ expected share to be around $100 million. This will contribute to record property underlying EBIT of between $240 million to $260 million, up from $129 million in the prior year.

Brickworks managing director Mr Lindsay Partridge said:

Since the end of the first half, there has been a number of significant industrial property transactions in western Sydney. The pricing of these transactions has reinforced the strong investor appetite for prime industrial assets.

In addition, property earnings are expected to be boosted further by the completion of developments at Oakdale East, currently forecast to occur in July.

We have seen strong demand and sustained growth in the value of our Property Trust over a number of years. The COVID-19 pandemic has only fuelled this growth, by accelerating industry trends towards online shopping and increasing the importance of well-located distribution hubs and sophisticated supply chain solutions.

The Amazon facility in Oakdale West is expected to be completed in the first half of FY22, with the Coles Group Ltd (ASX: COL) distribution warehouse now under construction and expected to be completed early in FY23.

Broker opinion on the Brickworks share price

The broker Ord Minnett is still positive on Brickworks, with a price target of $26. It noted the recovery in both the Australian and US building product segments.

However, Ord Minnett believes that the demand for industrial property could lead to a continuing good performance for Brickworks.

The post Why the Brickworks (ASX:BKW) share price is up more than 10% this week appeared first on The Motley Fool Australia.

More reading

• 2 high-quality ASX 200 shares that could be buys
• ASX 200 drops, Brickworks soars, Woolworths falls
• The Brickworks (ASX:BKW) share price hit an all-time high today. Here’s why
• Why Brickworks, Ecofibre, Frontier Digital, & Ramsay are storming higher
• Brickworks (ASX:BKW) share price jumps 8% on record property earnings

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks and COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3wqIkkY

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Concerns about Tesla‘s (NASDAQ: TSLA) electric-car sales in China have mounted recently, creating some worries about the growth stock‘s lofty valuation. Indeed, GLJ Research analyst Gordon Johnson says he believes Tesla’s monthly vehicle deliveries in the important auto market have peaked at around 20,000. “Should this prove to be the case, that would take a massive chunk out of the TSLA bull case,” the analyst said in a note to investors on Tuesday.

But one analyst remains resolutely bullish on Tesla shares: Wedbush analyst Daniel Ives. Here are his thoughts on the China situation and the company’s overall potential.

A major opportunity

Though Ives admits that Tesla’s second quarter may have started off rocky in China, he believes that things will smooth out over time since the market opportunity is so significant. He notes that he expects electric-vehicle sales as a percentage of total annual auto sales in the market to increase from 5% to 10% over the next 10 years. As a pure-play electric-vehicle manufacturer, Tesla is positioned to benefit, Ives believes.

Further, the analyst notes that recently released data from China Passenger Car Association (CPCA) points to a 29% jump in monthly Tesla vehicle sales in May, compared to April — though 11,527 of the 33,463 were exported. Nevertheless, with a reported 33,463 deliveries, the company’s China manufacturing seems to be contributing meaningfully to Tesla’s overall sales. For reference, Tesla delivered about 185,000 electric vehicles globally in its first quarter of 2021.

Tesla has invested aggressively in the China market, building a major factory in Shanghai. Indeed, its China market currently has enough tooling installed to build 450,000 vehicles annually, though it may take time for Tesla to ramp up production enough to achieve this capacity.

“Model Y ramp in Shanghai is progressing well,” Tesla said in its first-quarter update. “We expect that our Shanghai factory will continue to increase quarterly production output through the year.”

The path to $1,000

Ives has a $1,000 12-month price target on Tesla stock, representing 67% upside from where shares are trading today.

The analyst’s $1,000 price target for the stock was established after Tesla announced first-quarter deliveries that crushed analyst estimates. At the time of his price-target increase, he said he thinks Tesla deliveries could exceed 850,000 this year — a huge jump from approximately 500,000 deliveries last year.

While these analyst opinions can be informative, investors should focus less on month-to-month and quarter-to-quarter deliveries and more on Tesla’s year-to-year execution. It’s difficult to gauge how a company’s sales are trending or its expansion is faring over periods of months or quarters.

Let’s zoom out and see what happens for the full year. The automaker’s total 2021 deliveries in China relative to its total deliveries in the market in 2020 and 2019 will likely be more telling about the company’s long-term sales trajectory in the market.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Tesla stock: Headed to $1,000? appeared first on The Motley Fool Australia.

More reading

• Patience, grasshopper
• Why ‘value’ and ‘growth’ share categories are meaningless
• Here are the US shares ASX investors were buying last week
• Tesla Plaid is so good Elon Musk says the Plaid+ is cancelled
• Electric car maker Tesla (NASDAQ:TSLA) looks set to move into restaurants

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/3xg00Aa

Shares in Iress Ltd (ASX: IRE) are sliding today after the company announced a market update. At the time of writing, the Iress share price is trading at $12.40, down 3.05%.

The share trading system developer took the spotlight on Thursday after the company’s shares surged 16.80% higher on takeover rumours.

Driving growth and shareholder return

In today’s statement, Iress advised it had undergone a sweep of changes to accelerate its growth trajectory and enhance shareholder value.

The company has identified a broad range of initiatives spanning from its core technology and product offerings to superannuation services. A consistent theme across the initiatives was the focus on enhancing software-as-a-service capabilities and accelerating movement to its cloud-based products.

Additionally, the Iress board announced a potential divestment of its UK-based mortgage sales and origination (MSO) business.

Iress acquired the MSO business in 2013, building out its technology capabilities and transitioning the business to a recurring subscription model. In 2020, MSO delivered revenue of $26.9 million, 46% of which was recurring revenue.

The potential divestment comes under the rationale that a different owner could drive higher returns for the MSO business. The company noted that UK valuations for software businesses were at record highs. The intention would be to distribute surplus capital to shareholders if a sale occurred.

In addition, the announcement reaffirmed the company’s 2021 segment profit guidance of 7-10% growth on the prior year. This follows its FY21 net profit after tax upgrade announcement on 26 April.

Management commentary

Iress chair Roger Sharp commented on the initiatives:

Since being appointed in February, we have initiated a thorough review of the business with a view to accelerating growth and enhancing returns, with a specific focus on EPS and ROIC.

I am impressed by the quality of our business, the strength of our client relationships and the significant scale of our growth opportunities. Iress has a refreshed board, and new members of the management team to lead sales and product teams with a focus on enhancing product design and sales effectiveness.

We are executing well, with major projects going live in Australia and the UK. We are also committed to managing our capital efficiently and returning surplus capital to shareholders.

How has the Iress share price performed this year?

Iress is traditionally a slow-moving share with steady earnings and reliable dividends.

The Iress share price has spent most of this year trading around the $10 level until yesterday’s speculation rumours pushed it above the usual trading range.

The post Iress (ASX:IRE) share price tips lower despite positive update appeared first on The Motley Fool Australia.

More reading

• ASX 200 up 0.2%: Tech shares rise, Domino’s expands
• Bidding war for the Mainstream (ASX:MAI) share price intensified today
• M&A rumour fires up the Iress (ASX:IRE) share price today

Kerry Sun has no position in any of the shares mentioned in this article. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3gnl7JT

At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) has bounced back from a poor start and is pushing higher. The benchmark index is currently up 0.2% to 7,319.2 points.

Here’s what is happening on the market today:

Tech shares rise

The Australian tech sector is charging higher today and helping to take the ASX 200 into positive territory. The likes of Afterpay Ltd (ASX: APT) and Appen Ltd (ASX: APX) are recording strong gains, leading to the S&P/ASX All Technology Index (ASX: XTX) rising 1.7% so far today. This follows a positive night on the tech-heavy Nasdaq index, which pushed 0.8% higher.

Domino’s expansion

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is rising today after announcing its expansion into the Taiwan market. The pizza chain operator has entered into a binding agreement with Formosa International Hotels Corporation to acquire the corporate stores and franchise rights held by Domino’s Taiwan for A$79 million on a cash and debt free basis. Domino’s Taiwan is the second largest pizza chain in the Taiwanese market with a network of 138 franchised stores and 19 corporate stores.

SkyCity guidance

The SKYCITY Entertainment Group Limited (ASX: SKC) share price is trading lower today despite revealing that it expects to record solid profit growth in FY 2021. This morning the casino and resorts operator advised that it is expecting to report a normalised net profit after tax of between NZ$84 million to NZ$88 million. This represents a 26.7% to 32.7% increase on FY 2020’s normalised net profit after tax of NZ66.3 million.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Appen share price with a 6% gain. This follows improving investor sentiment in the tech sector. The worst performer has been the Iress Ltd (ASX: IRE) share price with a 3% decline. This morning the financial technology company released a market update.

The post ASX 200 up 0.2%: Tech shares rise, Domino’s expands appeared first on The Motley Fool Australia.

More reading

• BlueScope (ASX:BSL) share price jumps on broker upgrade today
• Domino’s (ASX:DMP) share price rises on acquisition news
• These ASX shares just got hit by broker downgrades
• What I regret about my Afterpay (ASX:APT) shares: analyst
• 2 high-quality ASX 200 shares that could be buys

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Appen Ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3wa4Tue